Five expense categories most creditors miss - and how to calculate them correctly
-
You recovered the principal debt, but the process cost three times more than you had planned. Did you know that most of these costs could have been recovered from the debtor?
-
Did you know that legal costs for debt recovery in Latvia can be recovered from the losing party, but only if they are documented?
-
Which expenses are automatically recovered under the law, and which must be specifically stated in the statement of claim?
A company recovered a debt of EUR 15 000. The process lasted three months. Court costs were EUR 800. Attorney’s fees were EUR 1 200. Document translations cost EUR 300. Bailiff’s costs were EUR 400. Total additional costs reached EUR 2 700.
Of this amount, the creditor recovered only EUR 600 from the debtor — part of the court fee. The rest remained in the debtor’s account because the creditor did not know that more could be claimed.
First category: court fee or arbitration proceedings costs
These are the costs of filing a claim. In arbitration, an arbitration proceedings fee must be paid, in accordance with the requirements of the arbitration rules. In state court, a state fee must be paid, in accordance with the Civil Procedure Law. Following the April 2025 reform, a percentage-based state fee is no longer applied to claims of a proprietary nature. Instead, the fee is fixed, based on the claim amount range, with a maximum fee of €25 000.
How it is collected: Automatically — the court fee or arbitration proceedings costs are collected from the losing party in proportion to the part of the claim satisfied. If the claim is satisfied 100%, the defendant reimburses 100% of the fee. If 70% is satisfied, the defendant reimburses 70%.
Second category: legal representation costs
Legal costs are recovered from the losing party, but not automatically and not in full.
How to recover: the specific amount must be stated in the statement of claim or during the court proceedings, together with the attorney’s order and payment documents. The court will assess the reasonableness and proportionality of the amount.
Experience shows that Latvian courts award legal representation fees of EUR 300–1 500 in simple cases, and more in more complex cases.
Third category: statutory default interest
This is not an expense, but compensation for the use of your money during the delay period.
For commercial transactions, the ECB base rate + 8% per annum applies. If the contract contains a contractual penalty, it may be applied instead of or in addition to the statutory interest — depending on the contract.
How to submit: state the interest calculation from the day of default until the filing of the claim and add the wording